On Wednesday, the EUR/USD currency pair pulled back from the session highs of about 1.1849 to trade at about 1.1817. The currency pair trades within a descending channel formation in the 60-minute chart.

The pair has now plummeted to trade a few levels below the 100-hour moving average line. As a result, the currency pair is on the verge of entering the oversold levels of the 14-hour RSI.

EUR/USD Fundamentals Overview

From a fundamental perspective, the EUR/USD currency pair trades during a relatively busy period in both markets. On Wednesday, the US durable goods orders for December outperformed the expected change of -2%, with a change of -1.4%. The durable goods orders ex-transportation also beat the forecasted change of 0.3%, with a change of 0.9%, while the non-defence capital goods orders ex-aircraft outshone the estimate of 0.5%, with a change of 0.6%.

The building permits for December exceeded the (MoM) expectation of 1.4 million with a tally of 1.448 million. Housing starts for the period also beat the forecast of 1.33 million, with a tally of 1.404 million. On the other hand, the US industrial production for January exceeded the (MoM) forecast of 0.4%, with a change of 0.7%.

In the EU, Germany’s harmonized index of consumer prices for January matched the expected (MoM) change of -0.1%. The (YoY) equivalent was also in line with the forecast of 2.1%. On the other hand, Germany’s ZEW survey for the current situation in February fell short of -65.7, with a reading of -65.9, up from -72.7 in the previous update. The ZEW survey economic sentiment for the period also missed 65, with a reading of 58.3, down from 59.6.

EUR/USD Technical Analysis (the 60-min Chart)

Technically, the EUR/USD currency pair trades within a descending channel formation in the 60-minute chart. The 14-hour RSI also supports a bearish bias as it edges closer to oversold conditions.

Therefore, the bears will look to stretch the current decline towards 1.1781 or lower to 1.1749. On the other hand, the bulls will look to pounce on rebounds at about 1.1849 or higher at 1.1880.

EUR/USD Technical Analysis (the Daily Chart)

In the daily chart, the EUR/USD currency pair trades within an ascending channel formation. However, the 14-day RSI has recently pulled back to avoid rallying into overbought conditions.

Therefore, the bears will look to extend the latest pullback towards 1.1664 or lower to 1.1513. On the other hand, the bulls will look to pounce on profits at about 1.1955 or higher at 1.2085.